EAST LONGMEADOW - The state Department of Elementary and Secondary Education has completed an audit, clearing Superintendent of Schools Edward W. Costa II of misusing federal grant money except for a $40 lunch.

Costa was investigated by the state and the town after selectmen requested further details on professional development grant reimbursements he received in 2003. The board believed more than $1,500 spent on meals and gifts were excessive, said board Chairman Enrico J. Villamaino.

An audit conducted by the state Department of Elementary and Secondary Education found that Costa used more than $1,500 of grant money appropriately while Town Accountant Thomas Caliento's audit and an independent audit conducted by Thomas J. Scanlon and Associates concluded that town policies for travel expenses, particularly meal expenses, were not met by Costa.

"The grant was issued by the state and I followed the state guidelines for the use of the money as I always have. I am glad that the result of the audit reveals that," Costa said.

The professional development grant, also known as an improving educator quality grant, may be spent on things such as training, recruiting and conferences. The grant money in question comes from a July, 24, 2003, funded a boat trip that Costa organized for 12 school administrators on his personal boat. The trip included lunch and gift bags for each administrator.

The records include two receipts for lunch at Sam's Dockside totaling $192, one receipt for Boat U.S. where Costa purchased batteries, mini-flashlights and canvas bags totaling $280, a receipt from West Marine for toiletries and glow sticks totaling $192, and Bruce & Johnson's Marina Inc. where $206 was spent on hats and T-shirts. There is also a separate bill for Max's Tavern for $245, which Costa said was an administrative luncheon held four days after the boat trip. The total grant came to more than $1,000.

Other luncheons including one at the Hazard Grille on July 29 for $182 and one on July 30 at the Student Prince in Springfield for $344.

The state audit requests that Costa reimburse the town for a $40 lunch with then School Committee member Thomas McGowan. However, they agreed with how the rest of the grant money was used, stating the state does "not question any of the costs (of the lunches or other purchases) as to their allowability or propriety ... and by no means would they qualify as excessive."

Villamaino disagreed.

"The department laid off 16 teachers that year, Chapter 70 money was cut and expensive luncheons with administrators do not seem like a priority," he said.

Costa said the grant he used was specifically for professional development.

"The money we received from this grant could be used for meals, small tokens for administrators, guest speakers and other things like materials. I did not waste town money that could have been better spent elsewhere, that is the sole purpose of applying for these types of grants," Costa said.

Costa said most of the retreat work was done at the high school and the lunches were a way to treat his administrators after very intensive and long hours of work during the summer.

School Committee Chairman William Fonseca said he is satisfied with the results of the state audit and hopes the town can move on.

Selectman James D. Driscoll said he would like to put this behind him as well, but believes Costa violated the travel policy by not providing the town with an agenda, or list of participants at the events.

"In the school meals policy it clearly states that proper documentation and receipts are necessary before reimbursement can be made," he said.

School Committee vice chairman Gregory Thompson said the selectmen, School Committee members and town accountant at the time should all have checked off on the reimbursement requests and made sure the correct paperwork was turned in.

"It is clear that someone dropped the ball, but we were not there to enforce the policy at the time and we have to move forward and make sure it does not happen again," he said.

Costa said he provided detailed agendas for the audits. He said none of the auditors asked him for a specific list of who attended.

"If that information would been provided to us we would not be discussing this right now," Driscoll said.